Wells Fargo Names Its Top AI-Driven Software Stocks for 2026

Investment firm Wells Fargo (WFC) published a software-sector update for 2026. The analysts, led by Michael Turrin, surveyed 100 enterprise IT executives. Importantly, the survey showed that cloud spending is growing by roughly 5%, well ahead of overall IT budgets, which are rising closer to 2%. Demand was strongest for cloud infrastructure, cybersecurity, and GenAI, while cloud migrations showed the biggest improvement.Claim 70% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Wells Fargo said this trend is particularly positive for SAP (SAP), as more enterprises move core systems to the cloud. The survey also highlighted Microsoft's (MSFT) momentum, as 40 respondents expected a net increase in spending. At the same time, SAP and Oracle (ORCL) showed the biggest improvement compared with Wells Fargo's mid-year survey. 2026 Key Themes Looking ahead to the rest of 2026, the analysts outlined four key themes: Cloud and AI infrastructure spending is picking up: Wells Fargo estimates that the overall market for cloud infrastructure will reach $1 trillion by 2030. Indeed, spending is no longer limited to AI labs and is now spreading to hyperscalers, governments, and large enterprises. Because of this, the firm favors companies that can reliably secure capacity, including financing, GPUs, and power, and names Oracle as its top infrastructure pick for 2026. Established platforms are best positioned to benefit from AI adoption: As AI becomes a top priority for executives, companies are leaning toward trusted, mission-critical platforms, especially in areas like ERP systems. Therefore, Wells Fargo expects established platforms to capture a larger share of customer spending as AI moves from testing into full production. This makes SAP its top platform pick for 2026. AI builders are gaining momentum: Software development has emerged as the most useful AI use case and is now expanding into related areas such as creative design. As a result, Wells Fargo sees strong upside for the tools that allow for this type of innovation, particularly those with usage-based or consumption-driven models, and names Figma (FIG) as its top builder pick for 2026. Selective opportunities are emerging in vertical software: Wells Fargo believes that 2026 will favor stock pickers, as differences in valuations and growth outlooks are creating attractive opportunities, especially in vertical software. This led the firm to name ServiceTitan (TTAN) its top pick in this category. Which Software Stock Is the Better Buy? Turning to Wall Street, out of the software stocks mentioned above, analysts think that Oracle stock has the most room to run. In fact, Oracle's average price target of $308.90 per share implies more than 62% upside potential.